Brokers will be allowed to mingle client and insurer monies in the same account until January 2006, said the FSA.
It was responding to industry concerns over whether IT systems could be adapted quickly enough to allow separate accounts.
The FSA has said it will continue to look into segregation of client and insurer accounts and may undertake further consultation.
Biba said it will press for satisfactory resolution to risk transfer. "Within the final rules the FSA recognises that there is an issue and has allowed insurer and client monies to be commingled in the same trust account for 2005.
Biba will be making representation to the FSA over the coming months with a view to making the transitional arrangements permanent."
Biba chief executive Eric Galbraith said: "The industry has been given further time to make representation to the FSA. It is essential, therefore, that we continue to press for a satisfactory resolution to the question of risk transfer."
"I hope sense will prevail as the alternative will impose costs on the industry disproportionate to any benefits in terms of customer protection."
